Good Reasons To Get A Bank Account

With the turmoil in the financial markets today, many people are wondering if a bank account is worth the hassle. Bank account owners have to constantly be vigilant against electronic theft from the accounts, excessive banking fees, and overdrafts. However, having a bank account can provide you with some important protections that you will not have if you keep your money under your mattress. Here are some good reasons why you need to keep your money in a bank account.

Check Services

One of the most important reasons to get a bank account is for the check cashing services that they provide. Almost nobody pays in cash anymore, so if you expect to get paid, you can expect to receive a check for your services. Although it is possible to cash a check without a bank account, it will cost you a significant amount of money in fees and you will have to re-verify your identity every time. Many people also choose to write checks to pay their monthly bills instead of having to get an individual money order for each one that needs to be paid.

Obtaining Loans

Information about your bank accounts is often necessary on applications for loans or mortgages. Many lenders and creditors will not even consider extending credit to someone that does not have a basic bank account. Being able to manage a bank account is a signal that the person has good financial management skills. If you do not have a bank account, the lender is going to wonder why and suppose something negative happened in the past.

Protecting Your Money

There are many protections in place to keep your money safe in your bank account. If your money is taken or the bank fails, the deposits are insured to guarantee that you will get your money back. On the other hand, if your money is stolen out of the safe in your house, your money may be gone forever. Keeping your money in a bank account keeps it safe until it is needed and you can withdraw the money in small increments to limit your risk of loss.

Accurate Financial Records

If you are paying cash for everything, there is a good chance that you are not documenting where all of your money is going each month. You could be spending more than you think in certain areas of your life. A bank account tracks your spending through debit cards and checks and documents your deposits on a single statement. You can review this statement each month and see exactly where your money has gone.

There are many benefits to having a bank account. Some people believe that the benefits outweigh the risks while others do not agree. Do you have a bank account or do you prefer to use other financial options? Share your comments with us.

Comments

I haven’t used my credit union account for day-to-day banking in many years, but I still keep the account open for a couple of reasons. First, if we ever need a car loan or personal loan, their rates are typically the best we ever get. Second, they are low or no fee based, which worked out great earlier this year. We had to set up our own HSA account (our employer doesn’t offer one) and everybody else I looked into wanted to charge at least $8 a month service charges, where the HSA offered by the credit union has no monthly charges. Can’t beat free!

Although all the services you mention are important and will save you money, you want to build a relationship for the future. Eventually, you will buy a house and want a mortgage. The relationship you build now will help you get a mortgage later.

Memberships

Disclaimer

Disclaimer: Fin Engr, James, Renee, the rest of the team and guest posters are not financial professionals. Information provided is for informational and entertainment purposes only and does not constitute financial advice. This website is intended to provide general information and does not attempt to give you advice that relates to your specific situation.
*The Ads expressed herein are exclusively those of the Advertiser. They do not necessarily reflect our personal or professional beliefs.